Bunnings obtains agreement for the acquisition of Homebase

The Australian DIY market leader Bunnings has acquired Homebase, the second largest DIY chain in Great Britain and Ireland. Wesfarmers Limited, Bunnings' parent company, has entered into an agreement to acquire the 100 per cent stake in Homebase from Home Retail Group for GBP 340 mio (AUD 705 mio). The acquisition is subject to approval by Home Retail Group shareholders. The Board of Home Retail Group has unanimously recommended the transaction to shareholders. Transaction completion is expected by the end of the first quarter of calendar year 2016.
Bunnings is planning to make investments in the Homebase team in the first twelve months after the acquisition. It is also planning to develop pilot locations for Bunnings Warehouse stores. In the second phase, the new owner is planning to convert the Homebase chain to the Bunnings Warehouse format within three to five years.
Following the acquisition Bunnings will set up a new management structure under the leadership of John Gillam as CEO. Bunnings UK and Ireland will be headed by Peter Davis as managing director, who is currently chief operating officer at Bunnings. Rodney Boys will become finance director (currently chief financial officer).
Bunnings Australia and New Zealand will be headed by Mike Schneider as managing director, (currently director of store operations). COO will be Clive Dunkan (currently director of merchandising and store development). Justin Williams will be CFO (currently general manager information technology and financial services).